All Forum Posts by: Jim S

We just started this week on a 1960's ranch also. It's 1940 sq ft per level. Its a 3/2 on the main floor. The basement has lots of windows and is a walk out also. The basement even has a brick fireplace.
We plan to put a 4th bedroom downstairs but due to the way the main plumbing stack exits the home, we can not install a bathroom.
I have never built into our flips a rental apt. We make basements into an extra bedroom/office and a rec room.
This homes basement even has a bizarre 10'x10' bump out that is the basement on the 3rd bedroom upstairs. Was thinking of making a wine cellar in it. I am going try to find a used one to keep the budget as low as possible. I have never done a wine cellar before but this area is very yuppie and would most likely appeal to a wider than normal group of home buyers.

Post some pics of your house.

Jim

Its not a misconception in the DC area. Its reality. It's happened many times when I partner with a buddy who is an agent. His name is on our Articles of Incorporation and they will not pay commission to him as an agent and a shareholder about 80% of the time. Sometimes the banks try to further reduce his commission also. Maybe its different in your area.

Somethings to consider:
My buddy who also flips homes went thru the training to become an agent with the same intentions to conceivably obtain a better edge over fellow investors. Although he graduated he never followed thru with his license for two reasons.
First of all most banks will not pay you the buyers commission as an agent if you are also the buyer.
Second, he felt he opened himself up to increased liability in the disclosures being the home owner and selling agent.

Hope this helps.

Jim

We are looking to refinance out warehouse properties and I am finding that I am getting better offers when I package my entire banking. I am offering my personal banking, plus my HELOC, plus my other business' banking and credit card processing. Seems to make the banks dig harder into making it work.

I pay 2.5% to the Buyers agent and split T&R costs. Most buyers are asking for 3% closing cost help. I seems to be an automatic request that is put into all contracts by Realtors. With appraisals starting to become an issue, I would rather reduce the selling price of the home by the 3% instead of giving the $$ in the form of closing cost help.
My Realtor lists me as the point of contact for buyers agents when they call about getting access to my houses. As soon as I receive my 1st contract I always tell the other agents that are calling that they better submit a strong contract at this point. It cuts out the BS. The closing cost help is the 1st thing to be dropped.

Highest and best is getting to be common place in my market. One property was listed for $186,000 and we submitted $206,000. After 2 weeks the bank called for highest and best due to multiple offers. After several days my agent was notified that more new offers had been submitted so the had a second round of highest and best would start. I stayed firm on my offer and lost the property.
Last week I put in a contract on a total POS that had 45+ DOM. A total train wreck that was definitely investor and cash only. Magically the same day that I placed my offer there was a 2nd offer. They called for highest and best. The listing agent told my agent that the other offer looked better (I was cash and zero contingencies) and that they were making a decision in 24 hours. We held firm and got the deal.

On the front page of the lease I list in large letters my rules of no smoking, no pets and no day care of other peoples children. I make them sign it.

I have had a mortgage on a warehouse building for 5 plus years. The bank who holds the loan left a message that they want to do a property inspection. I have not heard from them concerning the property at all except to request yearly financials. Are banks requesting property inspections normal? I am worried that they are going to try to screw with my loan as I have heard that the commercial division of this bankis in trouble and laying off employees. Should I be paranoid?

Insurance covers accidents that are "sudden and accidental". Bugs are not or everyone would be claiming ants and roaches also.
If it were one of my properties, I would take care of the issue out of my pocket as I would want to make sure the problem was corrected the right way....especially if I lived next door like you do. Plus being proactive is better when it comes to future liability.

Yes....banks can be irrational.
Might be based on what they are owed.
Could be based on the premise that there is always a sucker in every crowd.